The insurance industry are blaming injury lawyers for the increase in whiplash claims in the UK, costing the industry around £2 billion every year.

They blame an increasing compensation culture affecting the nation with whiplash claims high on the list as one of the more popular cash back moneymaking attempts. The industry feel the knock on effect to car insurance premiums will be a ripple to fear and the fingers are pointed directly at the lawyers who help pursue successful claims.

Amount

The Association of British Insurers (ABI) have stated that they receive around 1,200 claims every day. With the average amount paid out for a whiplash claim around £5,000, nearly £2 billion is being spent on compensation for whiplash injury every year. Additionally, 75% of the UK's motor insurance claims are for whiplash injuries.

In fact claims have increased by up to 25% over the past five years despite figures showing roads are becoming safer.

According to Simon Douglas, director of AA Insurance, "The cost of whiplash claims equates to about £66 for every UK car insurance policy, or about 14 per cent of the average Shoparound car insurance premium. This is more than twice the cost of claims for accidents with uninsured drivers."

"Over the past year, the average quoted Shoparound premium for a comprehensive car insurance policy increased by 8.7 per cent and whiplash injury will become an increasingly important factor in future premium increases. At present, for every £100 spent on premiums, insurers pay out approximately £105."

Premiums
This will in turn affect car insurance premiums in the UK as the insurers attempt to make back what they have lost through the rise in claims.

A spokesperson for the motor insurance division of the AA commented, "One thing that is certain is that the average premium will continue to rise, but by how much?"

Some commentators suggest a rise of 20 per cent over the next year and certainly, a rise of that magnitude will be necessary if the insurance industry is to achieve an underwriting profit.

Underhanded
Sensing a potential cash cow criminals have got themselves in the act by making fraudulent whiplash claims according to recent reports.

The occasional gang of criminals have been caught staging car crashes so they can proceed with fraudulent whiplash compensation claims .

Although the popularity of such a far fetched scheme is still quite minimal, at least one attempt of this nature has secured a £26,000 lump sum payment for the 'injured' party.

Car Fraud Investigator, Peter Taylor, stated, "The scam is relatively easy to conduct: two drivable cars can be bought for around £1,000. An extra £800 is then used to buy fully comprehensive car insurance and the remaining £300 is used to purchase third party cover for the other vehicle. The cars are deliberately crashed and other members of the gang put their names on the claim and claim whiplash injuries